Hong Kong-listed Century Entertainment International Holdings Ltd has signed a non-binding agreement with a Vietnam casino to expand its gaming operations to that country. A Monday filing to the Hong Kong bourse called it an “effort to revitalise the group’s core gaming activities following the termination of [its] VIP room operations in Cambodia”.
The planned gaming platform “may potentially be offered to other third-party operators, including the group’s own proposed Vietnam operation”, according to the filing.
The group, incorporated in Bermuda, has declared its intention to “[transition] from mobile game solutions to a broader online gaming platform business”. Century said it is “positioned for high-end leisure [and] entertainment consumption”. It is also “proactively identifying other business opportunities that would further diversify business risk and bring new revenue streams”.
Loss-maker looks for a turnaround
Formerly Amax International Holdings Ltd, the group once operated VIP rooms in Sihanoukville and Dara Sakor, Cambodia. It posted a net loss of HK$45.7 million (US$5.9 million) for the fiscal year that ended 31 March — almost double the previous year’s loss of HK$24.2 million.
In June, Century formed a joint venture with Philippines-based World Platinum Technologies Inc, a gaming systems and content provider licensed by the Philippine Amusement and Gaming Corp. With the deal, the partners will “market and distribute gaming system platforms and related content across the Asia Pacific region”.
To date, the joint venture has generated revenue of HK$800,000 in July, HK$1 million in August and HK$3.268 million in September.
The group says the Vietnam incursion and its online gaming platform will create “mutual operational and marketing synergies”. It is also setting up a new business line to source and distribute premium camellia oil “to capitalize on this high-growth market”.
Trading suspended since June
In June, Century suspended trading following a disclaimer of opinion on its financial statements. In September, it engaged a new auditor, Crowe (HK) CPA Ltd, following the resignation of Fan, Chan & Co Ltd. It also appointed Zeng Qin as an independent non-executive director. According to TipRanks, the appointment will “enhance the company’s governance structure by strengthening its audit, nomination and remuneration committees”.
Trading in Century shares remains suspended until further notice.
Hong Kong-listed Century Entertainment International Holdings Ltd continues its shift to a broader online gaming platform with planned growth in Vietnam.